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Financial reports: Neiman Marcus, J. Crew

Neiman Marcus net earnings plummet 54%

Dallas–Lower sales coupled with higher inventory markdowns took a huge bite out of the bottom line of Neiman Marcus Group (NYSE: NMG.A), which also mails the Horchow and Chef’s Catalog books. Net earnings for the third quarter fell 54%, to $23 million, from $50 million last year. Total company revenue fell 10%, to $681 million for the three months ended Oct. 27.

Breaking it down by segment, Neiman Marcus Direct, which includes catalogs, reported a 6% quarterly revenue drop, to $97 million from $103 million last year. Operating earnings in the division plunged 92%, to $500,000 from $6.6 million. Quarterly revenue for retail stores decreased 11%, to $561 million.

Revenue declined 3%, to $195.6 million from $202.3 million a year ago. But net sales in J. Crew’s direct business, which includes catalogs, rose 6%, to $65.7 million from $61.9 million. Retail store sales were $96.7 million, down 6% from $102.8 million in the third quarter of 2000. Comparable store sales declined 18% in the third quarter.

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